Consolidated Statement of Cash Flows

(Million yen)

	FY2022 (as of December 31, 2022)	FY2023 (as of December 31, 2023)
Cash flows from operating activities
Profit before income taxes	9,922	9,073
Depreciation	228	363
Amortization of goodwill	164	385
Increase (decrease) in allowance for doubtful accounts	31	4
Increase (decrease) in provision for bonuses	125	(132)
Interest and dividend income	(3)	(5)
Interest expenses	7	7
Share of loss (profit) of entities accounted for using equity method	(64)	(56)
Gain on sale of non-current assets	–	(66)
Loss on retirement of non-current assets	25	24
Loss (gain) on sale of investment securities	(69)	(346)
Loss on COVID-19	22	–
Decrease (increase) in trade receivables	(1,771)	961
Decrease (increase) in accounts receivable-other	(8)	(855)
Increase (decrease) in trade payables	310	(204)
Increase (decrease) in accrued expenses	330	(33)
Increase (decrease) in accrued consumption taxes	395	(857)
Increase (decrease) in accrued enterprise taxes	37	(49)
Increase (decrease) in retirement benefit liability	68	78
Other, net	197	1,062

Subtotal

9,946

9,354

Interest and dividends received	3	5
Interest paid	(7)	(7)
Payment of loss on COVID-19	(21)	–
Income taxes paid	(3,126)	(4,208)
Income taxes refund	1	18

Net cash provided by (used in) operating
activities

6,796

5,163

(Million yen)

	FY2022 (as of December 31, 2022)	FY2023 (as of December 31, 2023)
Cash flows from investing activities
Proceeds from withdrawal of time deposits	–	1,158
Purchase of property, plant and equipment	(103)	(116)
Proceeds from sale of property, plant and equipment	–	266
Purchase of intangible assets	(181)	(183)
Purchase of investment securities	(13)	(98)
Proceeds from sales of investment securities	186	346
Purchase of shares of subsidiaries resulting in change in scope of consolidation	(844)	(7,511)
Additional purchase of investments in consolidated subsidiaries	–	(450)
Proceeds from collection of loans receivable	6	27
Other, net	(9)	196

Net cash provided by (used in) investing
activities

(958)

(6,366)

Cash flows from financing activities
Repayments of long-term borrowings	(46)	(604)
Purchase of treasury shares	(907)	(2,026)
Dividends paid	(1,667)	(2,295)
Other, net	(2)	(30)

Net cash provided by (used in) financing
activities

(2,622)

(4,954)

Effect of exchange rate change on cash and cash equivalents	0	–
Net increase (decrease) in cash and cash equivalents	3,216	(6,158)
Cash and cash equivalents at beginning of period	17,410	20,626
Cash and cash equivalents at end of period	20,626	14,468